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Give Your Store A Year-End Performance Review |  December 21, 2016 (0 comments)

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Las Vegas, NV—Review and conquer, with the New Year, just ahead!  As the hustle and bustle of the Holiday season is upon us, you will be planning your strategies for 2017 very shortly.  Smart retailers will take this opportunity, to review what went well and what could have gone better.

Starting now (with some initial thoughts), and just after the holiday season (with some finishing thoughts), it’s the perfect time for retail owners to sit down and have a good hard look at how their businesses are and have been running. Although ongoing performance monitoring is important, it’s also critical to dedicate a particular time of the year for setting some clear goals and asking some strong questions about where you have been and where your business is going. This exercise is worth doing both with December in mind as well as placing the whole year in perspective.  While the questions below are worded for December, retailers are advised to also ask the same questions about the previous 12 months. 

Why review what is already history, you may ask?  If you don't learn from history then you are destined to repeat it.  If business wasn't as good as expected, then the last thing you would want is to repeat it! Below are some relevant areas within a business and the types of questions that should be asked.

Marketing

Inventory

Vendors

Staff

These questions have not been developed as a complete or exhaustive list but should rather act as a catalyst for jewelers to ask better questions regarding themselves and their businesses.

Moving Onwards and Upwards. Now it’s time to look forward. This means setting some Key Performance Indicators (KPIs) and asking how these numbers ideally should look – again both for the year ahead and for the next December’s sales goals.

Sales, Gross Profit and Net Profit

Inventory Levels

Debt Levels

Owner’s Hours

Finish by following this formula--Four Key Areas that Business Owners Should Address:

  1. What should you do more? This involves looking at what worked well – either by careful planning or sheer good fortune – and whether these processes can be expanded.
  2. What should you do less?  Think about the biggest frustrations over the past year and how you can have less of them.  Delegation is at the forefront here.
  3. What should you start doing?  Don’t procrastinate; make changes now!
  4. What should you stop doing?  Are there product lines that are no longer profitable or staff members who are no longer an asset to the business?  Are there activities/tasks that now appear pointless?

If you want the next Holiday season and 2017 to be different from previous years, then plan ahead now. It’s never too early or late to make New Year resolutions! For retailers who are looking for even more guidance on how to make positive changes in the year ahead, we are happy to assist you.  Please reach out to us for a complimentary business opportunity analysis.

Native New Zealander David Brown has over 15 years experience in consulting, training, and public speaking. In 1996 David began offering his own unique brand of specialized training and management services to retailers throughout Australia and New Zealand where, following an early introduction to the jewelry sector, he bought a half share in a jewelry store in Australia, and increased its sales and net profit threefold in just three years. HIs retail clients now include two of the major Australian jewelry buying groups, a major chain jeweler in Australia, and a New Zealand jewelry group who between them have a combined membership of 430 retail outlets. Brown conducts regular retail seminars, supplying vital industry benchmarking and trend analysis in addition to consulting with a number of the members on an individual basis. He is an expert in the areas of inventory management, sales growth strategies, retail systems and staff management and, with the development of powerful industry- specific software, Brown can business owners with information and strategies to significantly improve sales, profit margins, control, and ultimately peace of mind. He can be reached at (702) 456-4886 or david@edgeretailacademy.com.

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